All Forum Posts by: Account Closed

House hack a 4 unit. You won't regret it.

@Hideaki Yen If you make sure the numbers work including a ~15% deduction in rent then you should be in good shape. Rental rates have historically gone up over time, even in the 08 crash. IMO, over leveraging doesn't apply to solid cash flowing rental properties, especially if you have 6 months of reserves set aside. Over leveraging can apply if let's say your flipping a bunch of properties with hard money, and there's a downturn in the market. But, if you buy and hold, and cashflow well you should be golden despite market conditions. The government has already shown they'll step in when things get bad, even if that means wiping out the middle class...

Hey Nolan, I'm 28 and started getting interested in REI around 23. So, you're way ahead of the game. Looking back, I would tell my to: focus on building my credit -> save up for 3.5% down payment with an FHA -> and then house-hack a local 4 unit. If you do it right, you'll live for free or close to it, and have your tenants pay your principal.

Put more focus on quality over quantity. My first two purchases were with a focus on quantity. While they gave me profits, they also gave me lots of headaches and lost sleep. I sold those a few years later. In other words, pick a few good houses in a great area that you'd want to live in, over a crappy area that will "cashflow better".

For networking, aside from a local meetup, you'll primarily want a rockstar agent on your team. Make sure they actually invest in rental real estate themselves and aren't just "investor friendly". Pick the right one, and they'll often be your gateway into a solid lender, contractor, and more.

My advice would be don't buy in MA. Buy in NH or ME. I've been far more successful at finding cash-flowing deals in southern nh/me. MA is also much more tenant friendly.